“The longer this continues, the more time indicators have to correct from oversold. Consequently, when the flag activates there will be plenty of slack rope in the system to allow a deeper leg lower,” the technical analyst wrote. “Coupled to a break through the floor of the flag, a roll-over by momentum indicators would also provide evidence that a reassertion south was underway.”
The iShares S&P 500 (NYSEArca: IVV) gained 1.4% on Wednesday, while the small-cap ETFs climbed 1.8%.
iShares Russell 2000
